Article
The Double-Edged Sword of USAID:
Aid or Dependency in South Africa’s NGO Landscape?
Lesley Ann Van Selm
The South African NGO sector has long been a lifeline for marginalized communities, bridging gaps where government services have failed. Yet, behind the façade of international generosity, a pressing question remains: Is USAID truly empowering South Africa’s civil society, or is it entrenching a culture of dependency that stifles self-sufficiency and innovation?
Khulisa Social Solutions has firsthand experience of USAID’s impact—both its potential and its limitations. In 2000, through USAID support, Khulisa pioneered one of South Africa’s first diversion programs for youth in conflict with the law. Over the years, this program has expanded nationwide, proving its sustainability beyond its original funding. Yet, not all South African NGOs have been as fortunate. Many have found themselves trapped in a cycle of donor dependency, forced to adapt their missions to meet the shifting priorities of American funders rather than the real needs of South African communities.
Aid as a Power Play
The influence of USAID in South Africa’s NGO sector is undeniable. With millions in funding annually, it holds the power to shape agendas, dictate priorities, and even silence criticism. While positioned as a force for good, the reality is that funding decisions are rarely neutral. They are tethered to US foreign policy interests, often sidelining local solutions in favor of imported models that do not always align with South Africa’s socio-political realities.
Moreover, the rigid compliance frameworks attached to USAID funding create bureaucratic hurdles that exclude grassroots organizations—those most embedded in communities and best positioned to drive real change. Instead, funding often flows to larger, well-connected NGOs that master donor language rather than those with the most impact on the ground. This creates a two-tier system in which smaller, local organizations struggle to survive, while a handful of donor-dependent giants dominate the sector.
Shifting Priorities, Broken Promises
One of the most frustrating aspects of USAID’s presence in South Africa is its lack of long-term commitment. Funding cycles are short, and priorities shift depending on global politics rather than local needs. A case in point: the initial focus on HIV/AIDS and gender-based violence has seen massive investments, but when donor interest wanes, so do the resources—leaving projects unfinished, staff unemployed, and communities abandoned.
This short-term, crisis-response approach ignores the need for systemic change. South African NGOs need funding that builds resilience, strengthens institutions, and enables long-term solutions—not just a series of high-profile, short-lived projects designed to satisfy donor metrics.
Beyond Dependency: A Call for True Partnership
To be clear, international funding is not inherently bad. It has catalyzed important work in South Africa, as seen with Khulisa’s diversion programs. But there is a difference between support and control. True partnerships require funding models that:
• Prioritize locally developed solutions rather than imposing Western strategies.
• Reduce restrictive compliance barriers that exclude grassroots organizations.
• Offer long-term funding commitments to sustain impact beyond political cycles.
• Encourage local fundraising strategies that build NGO financial independence.
South African NGOs must also take responsibility for their sustainability. We cannot rely solely on foreign aid and must develop diverse funding streams, private sector partnerships, and government engagement to ensure that critical services continue without being at the mercy of USAID’s shifting interests.
Conclusion: Aid Must Evolve, or NGOs Must Break Free
USAID has played a critical role in supporting South Africa’s NGOs—but at what cost? While funding has helped establish vital programs, it has also created a culture of donor dependence that threatens long-term sustainability. If South Africa’s civil society sector is to thrive, it must push back against the pitfalls of international aid and reclaim its autonomy. The future of social change in South Africa must be driven not by American foreign policy, but by South Africans themselves.
About us
Khulisa Social Solutions, a 27-year old renowned social impact organization that empowers communities through innovative solutions that address systemic social challenges.
For more information, contact
Lesley Ann Van Selm | 082 601 2299 | lesleyann@khulisa.org.za
